Network Engines Announces Channel Program for NS Series Security Appliances

Network Engines, Inc., (NASDAQ-NENG), a leading OEM appliance partner for Microsoft security solutions, today announced the ENGAGE(TM) partner program for its NS Security Appliances(TM). The program is designed to meet the demands of partners of all sizes and help them seize the large market opportunity in outfitting their customers with Prescriptive Security(TM) to defend their business critical Microsoft applications.

The Network Engines NS Series is a family of security appliances powered by Microsoft Internet Security and Acceleration (ISA) Server 2004. With aggressive price points starting from $2495, NS Series Security Appliances offer application-level defenses to businesses of all sizes. Specifically designed to defend Microsoft server assets, these appliances provide companies with the best-available application firewall protection for critical Microsoft applications such as Exchange(TM), IIS(TM) and SharePoint(TM).

"Most companies today do not have application-layer firewalls for Exchange, which leaves a critical application vulnerable to security breaches," said Jon Oltsik, senior analyst at the Enterprise Strategy Group. "The combination of Microsoft ISA Server 2004 and a Network Engines NS Series appliance provide a seamless, cost-effective security countermeasure that addresses this risk head on."

About the ENGAGE Partner Program

The Network Engines ENGAGE program provides resellers with all the tools and training to help them quickly assess the security appliance needs of their clients. All aspects of the program are designed to maintain a collaborative working relationship with partners, delivering communications, education and rewards in ways that are tailored to the particular needs of each organization.

"I've become a Network Engines ENGAGE Partner because the company understands that I'm looking to make money too. Unlike most technology company partner programs, ENGAGE is truly partner focused," said James Kernan, President, Networks Plus Technology Group. "With their business accelerator program, Network Engines is helping me to build a Prescriptive Security practice that uniquely differentiates my company as a Microsoft solutions provider."

"Although our channel program has a traditional structure, what's not traditional is our commitment to the reseller community," said Derek Cheung, Manager of Channel Marketing at Network Engines. "As a trusted Microsoft Certified partner, we are dedicating significant resources to keep resellers and consultants, at all levels, extend the power of ISA Server 2004, by ensuring smooth transactions, accurate product and pricing information, and aggressive incentives to reward them for doing business with us."

About Network Engines

Network Engines is a leading developer and manufacturer of security and storage appliances. The Company works with its software partners to develop storage and security networking appliances for mission critical applications. Network Engines is headquartered in Canton, Massachusetts and trades on the NASDAQ exchange under the symbol NENG. For more information about the company's products and services, visit www.networkengines.com.

Safe Harbor for Forward-Looking Statements

Statements in this press release regarding Network Engines' (the "Company") future financial performance and any other statements about Network Engines' management's future expectations, beliefs, goals, plans or prospects constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The Company's actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including those factors contained in the Company's most recent annual report on Form 10-K for the year ended September 30, 2004 and the most recent Form 10-Q for the quarter ended December 31, 2004 under the section "Factors That May Affect Future Operating Results" as well as other documents that may be filed by the Company from time to time with the Securities and Exchange Commission. Forward-looking statements include statements regarding the Company's expectations, beliefs, intentions or strategies regarding the future and can be identified by forward-looking words such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "should," "will," and "would" or similar words. The Company assumes no obligations to update the information included in this press release.

Network Engines and the Network Engines logo are trademarks of Network Engines, Inc. All other registered and unregistered trademarks in this document are the sole property of their respective owners.

Contacts
Network Engines, Inc.
Joni Moore, 508-308-7900
joni.moore@networkengines.com

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